Brookhaven residents' gas bills could drop by $100 a year under new program

Brookhaven Town residents in May should start seeing lower natural gas bills under a state-sponsored program designed to cut energy costs and deliver cleaner power, town officials said.

The average home will see savings of about $100 annually with the implementation of the Community Choice Aggregation program, which allows municipalities to offer alternatives to standard energy suppliers. Brookhaven officials and executives from Good Energy LP, the town program's Manhattan-based administrator, announced details of the program Thursday during a town board meeting.

Brookhaven's program is awaiting final approval from the state Public Service Commission, Good Energy managing partner Javier Barrios told Newsday on Monday. PSC spokesman James Denn said an approval date has not been set.

National Grid still would deliver natural gas to homes and small businesses that participate in the program. But Brookhaven will use its purchasing power to buy gas at a lower rate, and pass the savings on to customers, officials said.

Residents and small businesses will be automatically enrolled but may opt out, officials said, adding customers will receive letters in April explaining the program.

"This is actually one of the rare times when government has actually saved money for the residents," Brookhaven Councilman Jonathan Kornreich said.

Barrios said Thursday that natural gas would be supplied by Direct Energy, a subsidiary of Houston-based power giant NRG Energy, at a rate of 69.5 cents per therm. National Grid currently charges 79 cents per therm, Barrios said.

The Direct Energy price will be locked in for at least 24 months, Barrios said. 

Brookhaven Supervisor Edward P. Romaine estimated the average home would save $100 to $120 annually, adding that a typical Brookhaven home uses 1,000-1,200 therms per year.

Barrios' estimate was more conservative: $95-$100 in annual savings.

“The high cost of energy continues to rise, making it difficult for many families and small businesses to keep up," Romaine said in a statement. "By creating a Community Choice Aggregation energy program, the town is able to help cut their energy costs and keep more money in their pockets.”

National Grid officials were not immediately available for comment Monday.

The PSC, which regulates National Grid, had issued statewide approval of community choice aggregation, known as CCA, in 2016. 

Other towns across the island, including Hempstead and Southampton, have examined and initiated moves to advance CCA plans within their districts. 

Brookhaven is the largest Long Island municipality to formally adopt the program, which is offered by more than 100 communities statewide, officials said. The program has been implemented in the villages of Lynbrook and Bellerose, Brookhaven officials said in a news release. 

Brookhaven's adoption should spur other communities to follow suit, said Lynn Arthur, chief executive of Peak Power LI, a Southampton consulting firm that has worked with municipalities, including Southampton and previously Brookhaven.

Brookhaven is “really wise to do it, because the [gas] market has been so volatile. To lock in a price for a period of time is a good thing for consumers,” particularly if overall market prices rise, Arthur said.